It added: "In accordance with its fiduciary duties and acting under the Dutch governance code the board of management and supervisory board of AkzoNobelwill carefully review and consider this proposal".

In response, Akzo Nobel N.V. (AkzoNobel) confirmed that it has received a third unsolicited and conditional proposal from PPG for all outstanding share capital of the company.

Analysts at Evercore Partners said that if Akzo were to reject PPG's latest offer, the US company could come back with a hostile approach by the start of June. Elliott has joined with other holders to call on Akzo Nobel to reconsider after the company rejected two previous proposals.

Analysts from Morgan Stanley said it was noteworthy Akzo had not rejected the bid out of hand, and that PPG had made significant concessions - not only on the break fee but also on employment, pension plans, research and development spending and the location of production facilities.

The US firm behind Johnstone's Paints has launched, what it says, is a final bid to bag Dutch rival Akzo Nobel.

The latest proposal, announced Monday, is for 96.75 euros, representing a 50% premium to Akzo's undisturbed share price. The deal is comprised of cash of €61.50 and 0.357 shares of PPG common stock, values Akzo Nobel at $28.8 billion, PPG said, including the assumption of net debt and minority interests.

"If they don't, PPG is very likely to take this directly to shareholders".

"The industry-leading performance and outlook of our Specialty Chemicals business gives us the confidence to return proceeds to shareholders in advance of the separation", CEO Ton Büchner said in a statement.

The Dutch company first announced last month that it planned to separate its chemicals business, when it disclosed PPG's interest, and has said the plan would create more value for shareholders than PPG's offer.